This topic provides information about calculating the rate of FTB Part A using Method 1 of the FTB rate calculator.
Method 1 for calculating the maximum rate of FTB Part A applies when a recipient's ATI (1.1.A.20) does not exceed their higher income free area (1.1.H.10). It applies a 20% taper on ATI over the income free area to the recipient's maximum rate (1.1.M.26).
The income-tested rate of Method 1 cannot go below the base rate of FTB payable.
Act reference: FA(Admin)Act section 20A Indexed estimates, section 20B Indexed actual incomes
The components are:
The maintenance income test is only applicable under a Method 1 calculation for FTB Part A.
Act reference: FAAct Schedule 1 clause 10 Effect of certain maintenance rights, Schedule 1 clause 20 Effect of maintenance income on FTB rate
Policy reference: FA Guide 3.1.7 Maintenance Income Test
Last reviewed: 2 January 2013